Best way to pay off an overdraft?

rachie_2011

What is the best way to pay off an overdraft? I currently have two C/Cards and an over draft i'm paying off. i realise that with a new c/card I can do a balance transfer but what about the over draft?

I'm trying so hard to try and have just one outstanding amount of money I owe instead of a number of them... any ideas guys?

Triangle

Hi

When I cleared mine, every payday I would phone the bank and ask them to decrease the limit by £50, £100 or £200 - whatever I could afford to pay off that month (and 'lose') after budgeting everything else. The limit was orginally £2000 and it took a while but eventually it was clear.

HTH

T
x

rachie_2011

Thanks Triangle... I hadn't even thought of reducing the overdraft amount each month! Thank you

_Persephone

Be careful with this - I did this for a month, and then found out that each time you lower your overdraft, a credit search is performed, this often doesn't look favourable as it shows your available credit decreasing.

My main debts are all with Lloyds, so I have since moved my bank account to First Direct, I have a standing order that sends money over to Lloyds, plus my ebay and mystery shopping money is paid into this account. When the balance is zero, I plan to remove the overdraft completely, although it may take a while, I have about 800 to pay back!

willstewart

_Persephone wrote: »

Be careful with this - I did this for a month, and then found out that each time you lower your overdraft, a credit search is performed, this often doesn't look favourable as it shows your available credit decreasing.

Assumed they did that. Online banking gives this impression and I don't want to say reduce it one week by £50, £100 the next and then they decide I'm a bad risk due to excess searches and call it in.

Possibly easier just not spending as much and letting the amount owed drop slowly but that takes restraint on your part.

rachie_2011

I've got a new bank account, so I'm using the old Lloyds Over Draft as a debt to be cleared... I'm currently paying £190 every month into it, but being charged £46 intest because of it. However, I'm not using the account for any payments so slowly it will be paid off. I've been doing some sums and it looks like I'll of paid it off by April next year (along with my credit cards).

Thanks for the heads up _Persephone and willstewart!